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| 'Air India may require over $1 bn to stay afloat' |
| Press Trust of India / Mumbai Jan 14, 2010, 15:17 IST |
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National carrier Air India (AI), which is awaiting a Rs 800-crore equity infusion from the government, may require over one billion dollar to overcome its financial woes, a global aviation research firm has said.
Estimating that AI's total losses this fiscal would mount to $800 million in 12 months ending March 31, consultancy firm Centre for Asia Pacific Aviation (CAPA) has said that the airline would require at least one billion dollar for rebuilding itself.
Terming 2010 as the Year of Asian Airlines' bailout, it said AI expected to receive its first tranche of Rs 20 billion ($340 million) by March this year as its enters the initial years of its challenging restructuring.
The restructuring process would target rationalisation of its fleet and route network, among other things, to reduce cost-base and provide it with a more stable footing.
Worse situation faces another carrier, Japan Airlines (JAL), which would require up to $15.2 billion for rebuilding itself, the CAPA said in a recent report.
JAL's restructuring is set to account for the lion's share of government bailout in the region with Japan's state-backed Enterprise Turnaround Initiative Corp (ETIC) planning to arrange $8.7 billion to support its operations.
Saving China's Eastern Airlines is the next expensive deal in the region, with Beijing injecting $2 billion last year and another $1 billion this month, it said.
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